Bitcoin fell down to lows of $7050 over the weekend and into monday of this week, however in the past few hours we have seen a sharp bounce back to above $7400. Many are attributing this latest bounce to the current political crisis in Italy.
As outlined by The Independent, ‘Sergio Mattarella, who was installed as president by a previous pro-EU government, has faced calls for his impeachment after he refused to accept a minister who called Italy’s entry into the eurozone a “historic mistake”. ‘
This in turn has wrecked havoc to the financial markets in Italy over the few days with a mass sell off today as the UK traders get back to the desk following the Bank Holiday break. Zero Hedge reports:
With UK traders returning from vacation, Italy woke up to a sheer selling panic as yesterday’s “modest” selloff mutated into a full-blown liquidation avalanche, lead by a furious repricing of the BTP curve, where 2Y yields exploded another 170 bps higher on the day rising to 2.60% from negative just a few days ago…
The havoc has now also spread outside of the Italian Markets as we see Deutsche Bank stocks take a hammering as well as the French Banks.
Whether or not any of this is connected to Bitcoins current bounce is impossible to know and if it is it related to events in Italy the bounce is unlikely to be sustained.
Most analysts are expecting Bitcoin to continue its downtrend until some major support is found in the lower $6k region. But in our experience where Bitcoin will be tomorrow or next week is something no one can accurately predict and attempting to short or long Bitcoin at this point is Russian Roulette for your finances.